Pakistan records over $1 billion current account surplus

Pakistan is posting signs of economic revival as the State Bank of Pakistan (SBP) has recorded the single largest monthly current account surplus of $1.195 billion.

While experts believe that this spells great news for Pakistan as the inflow of funds could help alleviate macroeconomic pressures, the surplus comes after Pakistan logged consecutive current account deficits in January and February which is not unusual for the cash-strapped country. 

Historically, Pakistan has run large current account deficits, largely because of its trade deficit.

Analysts have chimed in, outlining how an uptick in remittances is to be credited for the large surplus as the country was able to attract a staggering $4.1 billion in monthly remittances in March.

Compared to the corresponding month in the previous year, the surplus stands at $832 million higher as compared to March 2024's $363 million.

This brings Pakistan’s current account surplus in the first nine months of fiscal year (FY) 2024-25 to a respectable $1.86 billion. According to reports, this is a stark improvement from the $1.65 billion deficit the economy experienced over the same period in FY 2023-24. 

The current account’s health has improved significantly, as it has witnessed a whopping 212.5 percent improvement. Pakistan’s trade deficit has not logged any significant improvements, reportedly worsening instead by 7.1 percent from a year ago to $2.41 billion.

The trade gap has widened on a year-on-year (YoY) basis as import growth has outpaced export growth. In March 2025, imports grew from $5.48 billion to $5.92 billion on a YoY basis which translates into a growth rate of about 8 percent.

Conversely, exports recorded a growth as well, surging to $3.51 billion from their earlier value of $3.23 billion amounting to a growth rate of 8.7 percent. While it might seem as if exports have grown faster, it is important to consider the larger initial value of imports which has caused the gap to widen.

Considering the first nine months of FY 2024-25, the trade deficit has widened by 14.7 percent. This indicates the overwhelming positive impact of remittances on the economy. 

Many believe that remittances will continue to rise as throngs of Pakistani citizens head abroad for better economic prospects. While this could exacerbate the domestic brain drain issue, tackling the issue could dampen the influx of much needed inflows.